Oil and Gas Project Management – Large-Scale Field Development
As part of an oil and gas project management assignment, we supported the delivery of an investment comprising more than 80 kilometres of pipeline infrastructure, over 20 well sites and a new greenfield oil and gas facility, from the coordination of engineering design through to the handover of an operational process system.
The demanding schedule, the active production environment and continuously changing project conditions required coordinated oil and gas project management, disciplined change management and technical supervision across critical engineering disciplines.
Industry
Oil and Gas – Upstream and Midstream
Our Primary Role
Oil and gas project management, supplemented by technical supervision in selected disciplines
Project Involvement
From engineering coordination through to the handover of an operational process system
Project Background
This was one of the largest hydrocarbon-sector investments undertaken in Hungary over the past two decades: a complex, large-scale field development project. The scale of the development is illustrated by the following figures:
- more than 80 km of pipeline infrastructure,
- more than 20 well sites, including gas-production, oil-production and water-injection wells,
- an entirely new greenfield oil and gas facility.
The facility’s primary functions included crude oil treatment, emulsion separation, water treatment and reservoir pressure maintenance.
Over the years, the system was gradually expanded to include gas treatment, gas gathering and compressor-based gas compression, followed by the capability to supply gas into a transmission pipeline for sale.
Chess Energy was responsible for coordinating the entire engineering and construction process and also performed technical supervision duties in selected disciplines.
Why was engineering management critical?
In a large-scale field development project of this kind, the technical scope is inherently complex. However, the greatest challenge is typically not an individual item of equipment, but the interaction between project stakeholders, engineering disciplines and schedules.
Schedule Pressure
At this pace, every decision becomes critical: a deviation identified too late may be significantly more difficult to correct in the following project phase.
Construction Adjacent to an Active Production Field
Changing External Conditions
Multiple Disciplines and Stakeholders
Key Oil and Gas Project Management Activities
Project Management
The core of the assignment was oil and gas project management and the coordination of the complete engineering and construction process.
Monitoring the project’s technical scope, schedule and milestones throughout the full development lifecycle
Coordinating the work of designers, suppliers and contractors and managing interfaces between engineering disciplines
Change management, including the assessment, documentation and preparation for approval of the technical and scheduling impacts of changing external conditions
Managing technical documentation and supporting informed decision-making
Coordinating on-site activities with the constraints of the active production field and scheduling the relevant connection points
Risk management and regular project reporting to the client
Technical Supervision in Selected Disciplines
Comprehensive technical supervision of the project was performed primarily by another contractor. Chess Energy participated in the most critical and high-priority areas of oil and gas technical supervision, where the technical and operational consequences were most significant.
We hold the professional authorisations required for these activities.
In addition to the ME-GO and ME-B authorisations held by our technical supervisors, we also hold authorisations covering further disciplines. For this particular project, however, our involvement focused on the critical areas described above.
The ME-GO authorisation covers technical supervision activities relating to hydrocarbon transmission pipelines, gas distribution systems and associated gas-industry facilities. The ME-B authorisation applies to mining structures, including surface facilities associated with extraction activities, such as well sites.
Our activities in these areas included:
- reviewing engineering designs and technical documentation and monitoring design changes,
- on-site technical supervision of construction activities,
- comparing the completed technical scope against the approved designs and applicable requirements,
- supporting the review of handover procedures and as-built documentation.
Combining project management and selected technical supervision activities within a single team provided the advantage that deviations identified during supervision could be reflected immediately in the project schedule and decision-making processes.
What did we learn from the project?
The project confirmed that in oil and gas project management, particularly in large-scale, multidisciplinary investments, the quality of coordination is at least as important as the quality of the individual technical solutions.
Where project management and technical control operate in close alignment, deviations can be identified earlier and decisions can be made more quickly.
The project also demonstrated that under demanding schedules and continuously changing conditions, it is not rigid adherence to the original plan but disciplined management of change that keeps the project under control.
A structured change-management process can help ensure that modifications are addressed as transparent and informed decisions rather than emerging as hidden project risks.
Let’s Discuss Your Project
Are you planning an investment that requires coordinated project delivery and an experienced engineering background, whether in an active production environment or under a demanding schedule?
Let’s discuss how project-level coordination and technical supervision can contribute to the quality, predictability and safe delivery of your investment.
